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Preston is in the 35% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 10%. What is the taxable
Preston is in the 35% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 10%. What is the taxable equivalent bond yield?
A record company bought the rights to an artists music catalogue and they expect to receive royalty payments of $35,000 per year forever (a perpetuity). What is this cash flow worth? Assume interest rates are 8%.
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